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SHOW NOTES FOR EPISODE 450: ASK BILL! WHERE TO BUY A HOUSE FOR $1,000 AND HOW TO FIND A MULTIFAMILY MENTOR
Tip of the Week
- Make your money when you buy – “It’s easy to overpay for real estate, especially in this market where things are selling quickly. In general, if you’re keeping the property, don’t count on appreciation as a way to make money. It can work but it’s still a higher risk than buying right. If you’re buying a rental, look for homes that need a bit of work and have cash flow from day one. Don’t forget to add in budgets for capital expenditures and routine maintenance.”
Ask Bill! Where to Buy a House for $1,000 or Less and How to Find a Multifamily Mentor
This is our monthly Fun Fact Friday “Ask Bill!” episode, where Bill answers specific real estate investing questions received during the month from e-mails, in-person conversations, phone calls or through online portals such as BiggerPockets.com and Quora. In this month’s “Ask Bill!” episode, Bill answers questions: Where Can Can You Buy a House for $1,000? and How Can I Find a Multifamily Mentor?
One of our goals here at the Old Dawg’s REI Network is to help educate/enlighten fellow real estate investors, to share what little knowledge we have by answering your questions, and to help other investors to broaden their understanding of real estate investing so they can avoid some of the mistakes that may cost later.
QUESTION #1 – I ran into your podcast recently. I believe its a bit dated but, none the less, I just wanted a little more info. Are there more ways to get property for $1000? – Carlos
ANSWER TO QUESTION #1
Carlos,
Thanks for listening to our podcast.
Yes, there are many ways to get properties for under $1,000.
- Buying distressed property
- Buying properties on Bid4Assets.com
- Buying raw land (tax liens, foreclosed, etc)
- Using OPM (other people’s money
- Wholesaling
- REOs
To clarify, I have never bought a house for $1,000. I almost bought a multifamily property on eBay for $30K but that’s as close as I came. But I know of people who have.
Here are a few links that show places you can get a house for $1,000
- Type in search under “Homes for Sale” Then, look at left column. Go down to price listing and where there are 2 boxes, side by side, in the right box (the maximum price box) put in $1,000 and click on the >> button. The results will reflect homes priced $1000 or less. Now, the properties may be in a bid situation but you can put $1,000 maximum bid and see what happens. See my podcast 072: Buying Properties on eBay.
- Bid4Assets is a leading real estate online auction website, having sold over 100,000 properties since 1999. Bid4Assets auctions all types of properties, including rental properties, vacant land, fixer-uppers and commercial property. Bid4Assets specializes in distressed auctions for the federal government, county tax-collectors, lenders and bankruptcy attorneys.
- Bid4Assets conducts federal forfeiture auctions for the U. S. Marshals Service and has conducted online tax foreclosure auctions for over 75 counties nationwide. New county tax sales are coming throughout 2017.
- It has 2 special bidding channels: $1 No Reserve Homesand $1 No Reserve Land.
- com is the nation’s leading online real estate transaction marketplace focused exclusively on the sale of bank-owned and foreclosure properties. The company brings a breadth of quality assets to the market, attracting prospective buyers through world-class marketing and leveraging a scalable technology platform to conduct transactions in a transparent, efficient manner.
- com and its parent company, Ten-X, are headquartered in Irvine and Silicon Valley, Calif., with offices in key markets nationwide. Investors include CapitalG (formerly Google Capital) and Stone Point Capital.
- If you want to take the time to learn how to bid, you may be able to find a $1,000 house. You don’t know unless you try.
Detroit, MI
- Detroit is a city going through a major transformation. Look at the numbers.
- Many major companies are investing in Detroit. Why?
- It’s worth checking out some of these sites as well as doing searches on Realtor.com, Trulia and Zillow
- Here is a site with a number of homes listed for under $1,000
- Detroit Land Bank
- Detroit Land Bank – Recent Auctions
KANSAS CITY SPECIAL OFFER (Feb 14, 2017)
- Here is a special offer made in February of this year in Kansas City for homes for $1,000
BUYING RAW LAND
- It’s even easier to buy raw land under $1,000. Listen to our podcast on flipping raw land
- Episode #083 – “Flipping Raw Land” with Mark Poldolsky “The Land Geek”
TINY HOMES! ONLY HAVE LAND? BUILD A HOUSE ON IT FOR UNDER $1,000
- http://www.goodshomedesign.com/tiny-house-for-under-1000/– 8X8 Arched Cabin
PROPERTY RADAR
- Foreclosures – coverage areas of AZ, CA, NV, OR, WA
- https://www.propertyradar.com/
Well, that’s it. I hope you at least got excited about real estate investing. Even if you don’t buy a house for $1,000, maybe now you realize it’s possible and other great things and deals are possible through real estate investing as well.
This little exercise was more of an encouragement than a “be all end all on” treatise on where to buy properties for $1,000. If you really want to buy a home for $1,000, I believe you can and encourage you. If you do, I want to know about it and have you on my show to talk about it!! Just contact me at bill@olddawgsreinetwork.com.
Happy hunting!
Best,
Bill
QUESTION #2 – WHERE CAN I FIND A MULTIFAMILY MENTOR?
Hi Bill,
I just listened to you on the Real Estate CPA Podcast. I enjoyed the podcast. I am hoping you can help me out. I live in the bay area and currently have 2 single family rental properties and a commercial condo but would like to purchase a multi family in the not so distant future. I am looking for a mentor who has current experience in Multi family real estate. Do you know of anyone who may be interested in mentoring me? If not, do you have any suggestions on how I can find a successful mentor? Here is a little background on myself: I worked in Corporate America for nearly 20 years and quit about 15 months ago. I have 3 kids and am currently a stay at home dad but I would like to move towards real estate professional status in 2021. Real estate seems to be a great option for me to grow wealth while also having the flexibility to spend a lot of time with my children. Thanks you for reading my comments. Take care, Jason
ANSWER TO QUESTION #2
Jason,
Thank you for your question.
You are very smart to seek out a mentor before you start investing. Many people think that after they’ve read a few books and attended a few seminars, that they are ready to invest. Sure, you can invest any time you want, but you can avoid very costly mistakes and a lot of heartache if you invest under the direction of a good mentor. In one episode of the Old Dawg’s REI Network podcast, I talk about all the things you need to do to effectively start investing in real estate. Education is your first step, the second is to find a mentor. To listen to the entire podcast, just click here: 006: How to Get Started in Real Estate Investing
The four main things you need to do to get started in real estate investing are:
- Get Educated
- Find a Mentor
- Write a Plan
- Take Action
I don’t do coaching or I would help you. If I was a coach, I have very high standards and would not just want to throw you into a bunch of videos, workbooks, etc. because I believe not everyone learns the same. I believe a coach should work with his/her students based on how they learn and be committed to their success and not just want to collect the big payments and go on from there.
Also, the reality is I’m just way too busy looking for deals, managing my properties and running the Old Dog’s REI Network podcast and website. There are plenty of mentors out there. You just need to be picky.
There are basically two types of mentors:
Ones that are paid to mentor you – (ranging from a few thousand to $40K and above) that have formal coaching programs with boot camps, seminars, webinars, training, networking opportunities, videos, booklets, and personal one-on-one coaching services.
Someone local that you find – The other type is someone that is local real estate investor who you can regularly meet with who can help you learn and get started. You find these types of mentors usually at a local REI meeting, through coffee meetings (maybe making contact first with investors in your area through BiggerPockets) or you do some research, find the big investors in your area and you seek that person out. When, you meet with local potential mentors, you can offer your skills in exchange for training, consultation, etc. If you are an engineer, for example, you might offer to help them with their computer system, develop/refine spreadsheets for market analysis or property analysis. Graphic artist. Web designer. Make prospect calls. Drive for dollars or file papers. The idea is that you are not expecting something for nothing. You need to be willing to give to get.
I personally like the later – a local mentor – if you can find one, but it does take a bit more work.
I will include in our show notes plenty of links to some of our podcasts/articles on finding a mentor
Finding a mentor can be one of the most challenging tasks to for a newbie investor. In fact, I listed “not finding a mentor earlier” as one of the top 5 mistakes I personally made in my real estate investing career podcast entitled “My 5 Biggest Real Estate Investing Mistakes… So Far” (episode #064).
How do you find a mentor near to where you live?
Find someone who is busy and successful who may need help in ways you can assist that person
Don’t be focused on what the mentor can do for you – you need to focus on what value you can bring to your mentor
Find the big investors in your area and you seek that person out. When, you meet with local potential mentors, you can offer your skills in exchange for training, consultation, etc. If you are an engineer, for example, you might offer to help them with their computer system, develop/refine spreadsheets for market analysis or property analysis. Graphic artist. Web designer. Make prospect calls. Drive for dollars or file papers. The idea is that you are not expecting something for nothing. You need to be willing to give to get.
Don’t give the mentor a carrot saying once you learn everything, you will bring them all kinds of deals
If you have any skill that the mentor needs, use that skill to serve your mentor
Paul Moore, co-founder of Wellings Capital and a guest on the Old Dawg’s REI Network Podcast episode on how to find a mentor had one potential mentee named Ben who offered to make Paul a meal to honor him (he didn’t really have any skills that he thought Paul would need, so he look at what he did best and he was a great cook) and after the meal, h asked Paul if he could just hang out and help him with odd jobs at the office
Ben’s words to those seeking a mentor -“Do whatever you have to do to get a mentor. Work selflessly. Do not try to get something out of it yourself. Do it with a sincere desire to serve and learn. The law of reciprocity is real.”
He later started earning a salary working at Paul’s company, continues to be mentored and is on his way to a new career – All because he had the courage to ask
What really impressed Paul about Ben was when he received personalized “Thank You” cards via US mail from Ben
Where Would You Find a Mentor?
- BiggerPockets.com
- Local successful people in your community (chamber of commerce, service groups, your church/synagogue, etc.)
- REI meetings or other real estate meet-ups
- Seek out people – research local real estate investing businesses, call and ask the owner of the business out for coffee
Will, I hope that answers your question.
Keep on moving forward!
Best,
Bill
LINKS
- 128: Where Can You Buy a House for $1,000?
- 275: Real Estate Day Trading for $100 Per House
- 430: 7 Ways to Buy Rental Properties with Little or No Money Down
- 084: 10 Best Ways to Buy a Property with Little or No Money Down
- 021: Buying Properties with Little or No Money Down with Brandon Turner
- 334: How to Acquire Investment Properties With No or Little Money Down
- 006: How to Get Started in Real Estate Investing
- 336 : Investing in Tiny Houses
DISCLAIMER: Many of the above strategies take knowledge and have a higher degree of risk. You need to do your research and/or work with someone who is experienced to reduce your risk.
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